S&P500 Hits Its 200 Day Moving Average

Written on June 16, 2011 – 8:07 pm | by Justin Paone |

As you can see in the chart below the S&P500 has been in a correction that started on May 2 2011. Today it hit its 200 day simple moving average (the big green line). A 200 day moving average can act as either a strong support for a stock, if the stock is above it, or a strong resistance for the stock, if the stock is below it.

Taking into account the strength of the 200 day moving average we may see the S&P bounce up from this line in the next few trading days. If it does go up it will be interesting to see if this is a turning point for the S&P or if its just another temporary pull back in an otherwise continuing downward trend. You can click on the chart if you want to enlarge it.

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Welcome to my blog. My name is Justin Paone and this is where I express my thoughts, discoveries,views and the day-to-day happenings in my life.

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